FFlai provides AI-powered assistants that handle automotive dealership communications 24/7, including calls, texts, and emails to schedule test drives, service appointments, and recall campaigns. The system integrates with a dealership's DMS and CRM to access and update customer data and keeps full call logs for transparency. Unlike generic automation, Flai emphasizes dealer-ready security, fast integration, and tight integration with dealership software to stay within existing workflows and never miss inquiries. Its goal is to prevent revenue loss from after-hours missed leads by delivering around-the-clock lead coverage and appointment scheduling.
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Industries
Company Size
11-50
Company Stage
Series A
Total Funding
$37.6M
Headquarters
San Francisco, CA
Founded
2025
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Total Funding
$37.6M
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. 1 hour ago 15 When Flai was raising its seed round last year, it was just a team of three people pounding the pavement to get car dealerships to use the startup's software to manage phone calls, emails, and texts. But CEO Ari Polakof was already looking to a more agentic future, where Flai's AI would handle far more. One year later, that future has arrived. The startup is working with more than 10 of the top 50 dealer groups in the country, and its AI is being used to answer and engage with customers, run outbound campaigns, and schedule appointments - 50,000 per month - across both sales and service. This has led to a 20x increase in revenue, Polakof told TechCrunch in an exclusive interview. Flai says this deep integration is helping the startup set itself apart from others trying to get car dealers hooked on AI. The growth is attracting investors, too. On Tuesday, Flai said it had raised a $27 million Series A funding round led by automation-focused firm Base10 Partners. The round included funding from dealers (Friedkin Group and Findlay Automotive), Toyota's venture arm, Y Combinator, and First Round Capital. Polakof said Flai's growth is coming from customers who see the bigger vision of what is essentially an AI-powered customer relationship management software built from the ground up and tailored to the specific need of each dealer. "Sure, we do answer the phone calls, but we're following up with customers, we're alerting the leadership whenever they need to take a look at something, maybe because the customer's mad, or because you forgot to respond, or promised them something next week," Polakof said. "We've grown quite a bit from just a phone solution to more of a platform. There are plenty of AI companies coming in, but I think that really speaks about the opportunity." Flai claims its software is also flexible. Earlier this year it launched with a luxury dealer in Puerto Rico where customers "switch between Spanish and English mid-conversation," Flai co-founder Juan Alzugaray wrote in a LinkedIn post. "We started where we always do: inbound service calls. It went well enough that they added sales. And now the group is rolling Flai out across all 8 of their stores," he wrote. The result of all this is that dealerships are selling more cars, making more money, and "customers are getting answers faster," according to one of the groups Flai works with. Perhaps unsurprisingly, Polakof said much of Flai's customer growth has come from the dealers talking up the product to their peers. "If you really do great by them, they also do great by you, and they recommend you, and talk about you," he said. This has led to Flai generating half of its revenue from new customers, according to Polakof. Customers are making these referrals because they like Flai's software, Polakof said, but also because they get up and running quickly. Flai's software can be live in a dealership 10 days after a contract is signed, and he tells his team - which is now up to around 40 people - that they need to respond to customers within 20 minutes "at most." "The common experience, especially around automotive [software] vendors, is - and many are almost traumatized by this - is that they sign the contract and then the company disappears," he said "I'm fully focused on making sure that we treat every customer as if they're our only customer, especially because I know how hard it was to get the first one." That speed and customer experience, combined with the knowledge Flai has developed on how dealerships work and what they need, is what Polakof said protects the startup from products like Muse, which Meta has pitched as a one-shot solution for small businesses. "You get a group of really smart people, and you spend all your days, all your time thinking very deeply about this one space - it's just so hard to envision that any other platform outside of the space can come in and start going after your customers," he said. For all this momentum, there is still one customer Polakof hasn't been able to land: his own local dealership. "I'm actually trying much harder than I should to make them a customer," he laughed. "I'm sure we will get them by next year." When you purchase through links in its articles, Jingletree may earn a small commission. This doesn't affect its editorial independence.
Flai, an AI-powered customer relationship management software for car dealerships, has raised $27 million in Series A funding led by Base10 Partners. The round included investments from Friedkin Group, Findlay Automotive, Toyota's venture arm, Y Combinator, and First Round Capital. The startup now works with more than 10 of the top 50 dealer groups in the US. Its AI handles customer interactions, outbound campaigns, and scheduling across sales and service, booking 50,000 appointments monthly. This growth has driven a 20-fold revenue increase over the past year. Flai's software can be implemented in dealerships within 10 days of contract signing. The company has expanded from three employees to around 40. Half of its revenue now comes from new customers, largely through peer referrals amongst dealers. CEO Ari Polakof said the startup differentiates itself through deep integration tailored to each dealer's specific needs, going beyond basic phone answering to comprehensive customer management.
Flai raises $27M led by Base10 Partners to automate car dealership operations. What started with automating dealership communications has become something much bigger. Today, Flai is increasingly doing the operational work behind them. Flai started Flai to fix a simple but expensive problem: dealerships were losing customers because they couldn't answer every call or follow up consistently. Over the last year, Flai has grown more than 20x and now works with hundreds of dealerships, including more than 20% of the top 50 dealer groups in the country. Across service and sales, Flai helps dealerships answer customers, schedule visits, run outbound campaigns, and re-engage customers. Today, Flai schedules more than 50,000 appointments every month. As Flai has gone deeper into dealership operations, Flai has also proven its initial thesis, that the opportunity is much larger than communication. Flai is excited to announce that Flai has raised a $27 million Series A led by Base10 Partners, with participation from Toyota Ventures, First Round Capital, Y Combinator, The Friedkin Group, and Findlay Automotive Group. This funding will help Flai pursue its long-term vision: automating as much of dealership operations as possible. The conversation is only the beginning. Almost every customer interaction creates work behind it. Customers need to be contacted and scheduled. Missed appointments need to be recovered. Recalls and declined services need to be worked. Systems need to be updated, and sometimes the right person at the dealership needs to get involved. Historically, software has helped dealership employees keep track of this work. Flai believe AI can increasingly do the work itself. Once an agent can understand what needs to happen, communicate with the customer, connect to dealership systems, and take action, it can own increasingly large parts of the workflow. That is already happening at dealerships using Flai today. The conversation is becoming the entry point into execution. Today, Flai is introducing Flai's AI-native Service and Sales CRM. Traditional CRMs create tasks, organize pipelines, and tell people what to do next. But they still depend on someone noticing the opportunity, deciding what to do, and manually moving it forward. Flai is built around AI agents that can understand what's happening across the dealership and actually take action. It can identify missed opportunities, flag operational issues, surface heat cases with suggested resolutions, and automatically report on what needs attention. When action can be automated, Flai takes it: reaching out to customers, handling conversations, scheduling appointments, and updating dealership systems. When human judgment is needed, it brings in the right person with the full context and a recommended next step. The CRM doesn't just tell your team what needs to happen next. It makes it happen. What's next. Flai is using this funding to invest aggressively in product and engineering, deepen its integrations, and expand the workflows Flai can take responsibility for. Flai has been fortunate to build alongside some of the best operators in automotive. Having Toyota Ventures, The Friedkin Group, and Findlay Automotive Group investing alongside Base10, First Round Capital, and Y Combinator makes that especially meaningful. Flai has seen what AI deployed correctly inside dealerships can do. Now Flai is doubling down on it. Its ambition is to automate as much of the administrative work of running a dealership as possible, so the people inside the store can focus on what they do best: taking care of customers. There's an enormous amount left to build. That's what Flai is building at Flai. Flai is hiring across the team. If you want to help build the future of dealership operations, join Flai. And if you're a dealership interested in seeing what Flai can do for your store, get in touch with Flai at [email protected].
As customer expectations evolve, automotive retailers are navigating a period of significant operational change. While the global Dealer…
Flai integrates with Tekion to enhance connectivity across the automotive ecosystem. API integration supports data sharing and collaboration for technology partners serving dealers and OEMs. Flai, an AI communications platform for dealerships, today announced an integration with Tekion, innovator of the first end-to-end*, AI-native cloud platform serving the entire automotive retail ecosystem. This collaboration aims to expand the connected partner ecosystem within Tekion's Automotive Partner Cloud (APC), enhancing operational efficiency through enhanced data connectivity. Flai automates communications for dealerships with AI, handling inbound calls, outbound outreach, text messaging, and email to help capture leads, schedule service and sales appointments, and maintain consistent follow-up. Through this partnership with Tekion, dealers can now connect Flai's AI communications platform with Tekion's Automotive Retail Cloud (ARC). This connection helps dealers improve information flow between systems and reduces manual data entry, empowering teams to make faster, more informed decisions. The integration helps dealerships handle every phone call, book more service appointments and sales visits, and follow up with customers and staff through text and email. "Dealerships are looking for ways to handle more customer interactions with less friction," said Ari Polakof, Co-Founder and CEO of Flai. "Integrating Flai with Tekion enables stores to respond instantly to every call and follow up via SMS or email, so staff can focus on delivering a great customer experience." Tekion's ARC is the first and fastest cloud-native platform including all functionalities of a DMS, CRM and accompanying tech stack to run a seamless retail business. Through the ARC platform, Tekion APC brings together a growing network of approved partners focused on driving innovation, efficiency, and choice for dealers. The Flai/Tekion integration within ARC Sales, CRM, Parts and Service supports operational efficiency, simplifies processes, and enhances visibility for dealership staff and consumers alike. About Flai. Flai is an AI-powered communications platform for automotive dealerships. Flai automates inbound and outbound phone calls, text messaging, and email so dealers can capture leads, book more service and sales appointments, and keep follow-ups consistent. About Tekion. Tekion is redefining automotive retail with its end-to-end AI platform purpose-built for the industry. By embedding AI into every workflow, Tekion delivers intelligent automation, real-time insights, and advanced decision support - driving efficiency, revenue, and modern consumer experiences. As the first and fastest cloud-native platform for automotive, Tekion brings OEMs, dealers, partners, and consumers together through its revolutionary suite: Automotive Retail Cloud (ARC) for retailers, Automotive Enterprise Cloud (AEC) for manufacturers and large automotive enterprises, and Automotive Partner Cloud (APC) for technology and industry partners. With AI-powered, cloud-native technology, Tekion enables the most seamless, transparent, and profitable retail experiences in the industry. For more information, visit www.tekion.com. *End-to-end refers to its integrated data management platform covering all automotive business functions. Disclaimer: Tekion does not endorse or recommend any specific partner solution; dealers are encouraged to evaluate and select partners based on their own business needs.
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Industries
Company Size
11-50
Company Stage
Series A
Total Funding
$37.6M
Headquarters
San Francisco, CA
Founded
2025
Find jobs on Simplify and start your career today
Don't see your dream role? Check out thousands of other roles on Simplify.Browse all jobs